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Survey (18%fee/Help us make Upwork Better)

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Community Guru
Bojana D Member Since: May 2, 2011
61 of 174

I got the survey. They're obviously doing the split groups thing to gauge reactions to different numbers.

 

I got the one with 18% for the first $100, 10% for the first $10000 and then 7.5% for amounts above that. I still think it's too high, especially considering the many fields that need short one-off jobs done. Not to mention some freelancers prefer not to work long-term - just because it fits their schedule better. A move like this will basically double their fees and if that doesn't make one reconsider working here, I don't know what will. 

 

And let's be real, if there are limited sets of numbers already being selected, this is happening. Just not right now. But maybe next year, or when the migration from Elance is complete, it's happening. And it's definitely enough to motivate me to look for alternative sources of work. I fill the slow periods in my long-term contracts with one-off short jobs, most of them in the $130 - $300 range. If this happens, I'll have to pay double fees for those? And when I pay taxes on what's left of it, the end result looks like I've done the work as charity. No, thanks. 

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Community Guru
Douglas Michael M Member Since: May 22, 2015
62 of 174

@Bojana D wrote:

I got the survey. They're obviously doing the split groups thing to gauge reactions to different numbers.

 

....I still think it's too high, especially considering the many fields that need short one-off jobs done. Not to mention some freelancers prefer not to work long-term - just because it fits their schedule better. A move like this will basically double their fees and if that doesn't make one reconsider working here, I don't know what will. 

 

And let's be real, if there are limited sets of numbers already being selected, this is happening. Just not right now. But maybe next year, or when the migration from Elance is complete, it's happening. And it's definitely enough to motivate me to look for alternative sources of work. I fill the slow periods in my long-term contracts with one-off short jobs, most of them in the $130 - $300 range. If this happens, I'll have to pay double fees for those? And when I pay taxes on what's left of it, the end result looks like I've done the work as charity. No, thanks. 


Bojana,

 

Good observations. 

 

I don't see myself bearing the direct cost of any increase for short-term jobs. My rates are still going to be market rate for the task plus the relevant Upwork commission. On the one hand, I can afford to take this gamble because I don't compete on price, and have recently been getting longer-term contracts. On the other, there's a good chance it will cut off a niche I've specialized in: editing for non-English-native graduate students studying in English, the upper limits of whose budgets often graze the lower limits of my rates. If I'm to continue in that niche, the likelihood of finding such work via Upwork will probably take a nosedive.

 

Best,

Michael

 

p.s. Addressing survey method, not being a method guy, my understanding is that the best procedure would have been to send each proposed tier structure to a representative sample of all users; though we can't know for sure, this looks like what Upwork has done.

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Community Leader
John T Member Since: Mar 19, 2015
63 of 174

I'm still not understanding what the real point of this is. I don't think it's really a revenue-generating thing, as they're only putting up fees on the smaller amounts. In real terms, it's not going to generate much cash for Upwork.

 

Surely skewing the payment structure to benefit long term relationships is somewhat philosophically at odds with the whole "freelance marketplace" concept? I mean, one of the key reasons to become a freelancer is specifically not to work for one boss long term. And yet another is that clients have to compete for your time just as much as you have to compete for their jobs.

 

I can't make sense of it at all. I can't see where it would deliver a benefit for anybody.

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Community Guru
Jean S Member Since: Oct 22, 2007
64 of 174

Reduction of part time jobs benefits Upwork.

 

All those small jobs are costing them money. People with low rates cost them money. They simply do not make enough profit to keep the jobs around and will gradually move away from this area and more into their new Enterprise Solutions. http://ptc.elance.com/

 

So if you qualify for Enterprise Solutions you will probably be ok. The rest of us need to move on to another site. It's that simple. After really thinking long and hard about this yesterday this seems to be the most applicable reason for what is about to happen.

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Community Guru
Suzanne N Member Since: Aug 15, 2012
65 of 174

The more I see changes I wonder if Upwork is looking to self implode. The only thing I can see with this is they are trying to get rid of the freelancers and head towards long paying contracts, but even those who have long term contracts I am sure are not going to be willing to pay 18% for a system that doesn't work.

 

I use to think it was ok for 10% but with all the problems on the site and job invites and the search engine not working correctly and now even jobs that a client has hired and feedback are all messed up. It is not even worth the 10% I pay any longer.

 

I pay almost as high as that  in taxes, I am sure not going to give Upwork 18% whether it be the first $100 or the first $500. It is just ridiculous to think that you can gouge your freelancers asking if they would pay these kind of fees.

 

What (insert your own choice or words) sat in the office going we can raise their rates and rake in a billion more off the back of our freelancers.


Talk about abuse of something.

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Community Guru
Jean S Member Since: Oct 22, 2007
66 of 174

Maybe they sat there and thought...how do we get rid of the people we don't want while we move toward a new strategy of Enterprise Solutions? and the people invited to that program will only need to pay 8%

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Community Leader
John T Member Since: Mar 19, 2015
67 of 174

The enterprise stuff only covers a fairly narrow range of roles though. It would genuinely surprise me if they were happy to throw away all the other kinds of work that go on here.

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Community Guru
Ronald T Member Since: Sep 14, 2009
68 of 174

John, that's exactly what is happening! Read Jean's posts. Based on diligent research, she has realistic insight into the future of the Upwork business model.

 

Work "here" is a loss; work "there" (Upwork Enterprise) is a sustainable win.

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Community Guru
Jean S Member Since: Oct 22, 2007
69 of 174

@John T wrote:

The enterprise stuff only covers a fairly narrow range of roles though. It would genuinely surprise me if they were happy to throw away all the other kinds of work that go on here.


Enterprise solutions may cover a narrow range but it is an extremely profitable range with less headaches, professionals who know what they're doing and who don't flood CS with dozens of support tickets. They generate significant profits.It makes sense for a company to expand their business into the more profitable areas and get rid of costly areas that are not productive.

 

The other categories of which you speak, provide little benefit to the company, in many cases cost the company money to continually provide support to people who refuse to read documents to understand the system, teach themselves the system and become sophisticated freelancers. They are dead weight who cost the system money. They do not provide Upwork with value and cost the company money. The profit margin for these people is small; hence the need to focus on more sophisticated freelancers who are willing to put in the time to learn. Many of these $3 - $15 dollar freelancers provide the company with very little profit potential.

 

If you owned a business you'd want to concentrate on the people who make you money and not cost you money. Why do you think these are invite only positions. They are picking the cream of the crop who will provide the company with high revenues while providing clients with successful outcomes by intelligent people. 

 

Those who do not meet the standards are not worth the dollars being spent on them when time and resources can be better applied to profit generators who will provide the company with high profit margins. It only makes sense that this is the direction you would want your go to go.

 

Companies who succeed, hire the best people possible and get rid of the dead weight. 

 

With this in mind, I will now be changing the direction of my work experience back into areas that provide profits to the company with no hassles from me. 

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Community Guru
Suzanne N Member Since: Aug 15, 2012
70 of 174

Jean,


More then once you have made comments about $15.00 an hour jobs not being worth anything or not being profitable or less money. You have also insulted anyone making less then you think other's should make. It is really uncalled for. It is also not very professional to snub your fellow freelancers because you don't think they make enough.

 

Minimum wage in the US last time I looked was less then $15.00 an hour. I really wish you would quit making remarks like this to people. It is very unflattering for another Freelancer to be slamming someone who makes less money.

 

FYI $15 an hour full time for a year is almost $30,000 which is not a small amount of money. 

 

Please keep your opinions to yourself. It really is uncalled for putting other members of this forum down.

 

Edited to add FYI some of the freelancers invited to your so called special groups make less then $5 an hour, so please refrain from thinking you know more then anyone else about how much Upwork values a price range.

 

 

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